APA Beats Q2 Profit Estimates on Higher Oil Prices

Oil and gas producer APA Corporation has reported better-than-expected second-quarter profits, driven by higher oil prices.

The Houston-based company's realized price for each barrel of oil produced rose to $98.24 from $65.58 a year ago, due in part to the ongoing U.S.-Israeli conflict with Iran and resulting concerns over Middle East oil supplies and shipping through the Strait of Hormuz.

Benchmark Brent crude prices increased 19.2% from a year earlier to average at $89.62 a barrel during the quarter.

APA's quarterly production declined nearly 12% to 410,000 barrels of oil equivalent per day (boepd), mainly due to lower volumes from its U.S., Egypt, and North Sea operations.

The company expects to achieve about $500 million in annualized savings by the end of 2026, up from its earlier target of $450 million, as it broadens cost-reduction measures.